Gold is one of the most valuable metals on Earth. It has been so for a very long time, and it is going to stay the same for a long time to come. If you’re an avid investor who likes to invest in precious metals, we suggest you consider investing in natural gold nuggets. What are natural gold nuggets, you ask? Gold nuggets are naturally occurring pieces of native gold that are extremely rare, and that is exactly what makes them so valuable!
The discovery of a gold nugget causes a tremendous amount of excitement in the mining community. It captures the attention of a wider public, probably because finding a gold nugget implies that a lot of gold can be found at the same place at the same time; that too, with ease!
You may have heard the mention of gold nuggets if you’re involved in heavy investments. There is a massive hype surrounding these gold nuggets. But what are they? And why are people so eager to collect them? What makes gold nuggets so valuable, and why are they considered to be a great investment today? To find answers to all these questions, continue reading the detailed blog post ahead!
What Is A Natural Gold Nugget?As you can tell by the name, a natural gold nugget is a piece of native gold that is naturally occurring. The question is – what exactly is it, and what causes its formation?
Gold nuggets are most commonly found in the alluvial deposits, which are sediments that are formed by the movement of water. However, they can be found in other deposits as well. They may also occur in close proximity to primary gold deposits like gold veins or lodes, exposed due to external weather conditions. One may also extract gold nuggets from hard rock deposits of gold, provided that the rock surrounding it can be possibly removed. The chances of finding gold nuggets in tailing pipes of old mining operations that are left behind by the gold mining dredges are also quite reasonable.
How Are Gold Nuggets Formed?Gold nuggets are formed via a natural process. They are formed due to extremely hot water in cracks or fissures in hard rocks. They occur as large clusters of gold crystals, usually with other minerals like quartz or silver. Weathering causes the release of these gold nuggets that end up in streams as a result of the force of gravity.
Gold nuggets are natural fragments of gold that have weathered out of an original vein or lode. These nuggets show clear signs of abrasive polishing, which is due to the action of the streams that they’re usually found in. Other precious metals, such as platinum, also form nuggets through a similar natural process.
Are Gold Nuggets Pure Gold?
One of the most common questions that most people ask is whether gold nuggets are comprised of pure gold. They are usually 83% to 92% (20K to 22K) pure gold by mass. The purity varies with the area of origin. The natural gold nuggets that are from an Australian origin are usually the purest, containing the highest content of jewelry-grade pure gold. Australian gold nuggets are more than often 23K or higher, which means that they contain about 94% to 98% pure gold, sometimes even more. You can assess the purity of a gold nugget roughly by its color. The deeper the orange-yellow color, the more gold will be present in the nugget.
The remainder of the mass of a gold nugget can be made up of different minerals. Gold nuggets that appear blackish or reddish usually contain laterite. Similarly, the nuggets that contain quartz are cloaked with a white deposit. You can melt any gold nugget to obtain pure, jewelry-grade, gold, and sell it off as pure gold.
Where Are Gold Nuggets Found?
Natural gold nuggets can be as small as the size of a wheat grain or can weigh up to several ounces. Gold nuggets are extremely rare and hence, very difficult to find. In fact less than 2% of all gold found is in nugget form making natural gold nuggets rarer than diamonds. You may not find gold nuggets even in the largest gold mines. However, natural gold nuggets are most commonly found in Australia, Alaska, Arizona, California, and Canada, from where some of the largest natural gold nuggets have been extracted in the past.
As mentioned earlier, the content of pure gold in natural gold nuggets varies according to the region of their extraction. For instance, the Australian gold nuggets are of the highest quality. They’re usually 23K and sometimes even higher.
The First Gold Nugget
The first-ever gold nugget is believed to have been discovered in 1848 at the Sutter’s Mill, located in California. It was during the construction of a sawmill for Colonel John Sutter in January 1848, superintended by James Marshall, that the first gold nugget was found.
James Marshal saw something shiny in the water. He stooped down to pick it up and see what it was. When he picked it up, it appeared like a thin scale made of pure gold. To test if it really was what he thought it was, he bit on the glittering piece, only to confirm that what he had found in the water of the tailrace of the mill was really a piece of gold!
This piece of gold traveled to numerous places so that the claims of gold could be verified. By August 1848, it had reached President James K. Polk so that it could be preserved as a rare finding at the National Institute. It has been named the Marshall Nugget and is still preserved with other valuable collections. The Marshall Nugget launched a gold rush that is still underway today!
Largest Gold Nuggets
While you might think that the word nugget refers to something small, you’ll be surprised to know the size of some of the largest gold nuggets in the world. Let’s have a look at the two gold nuggets that are considered the largest gold nuggets ever found!
Welcome Stranger Nugget
Found at Moliagul in Victoria, Australia, in 1869, the Welcome Stranger Nugget has a gross weight of more than 78kg (2,520 troy ounces or 173 pounds). A 78kg gold nugget is sure to be huge, something you might not have expected when reading about gold nuggets!
The Canaã Nugget is also referred to as the Pepita Canaa. It was found in 1983 at the Serra Pelada Mine in Brazil. It weighs a tremendous 1,955 troy ounces or 60.8kg (gross weight) with about 52.33kg of pure gold. Hence, it takes its place in the list of the largest gold nuggets that have ever been found. It is believed that this gold nugget was even more massive (165kg), but it broke during the excavation process. Today, the Canaã Nugget is proudly displayed in Brazil’s Banco Central Museum.
How Much Does A Gold Nugget Cost
So, how much does a gold nugget cost? The price of a gold nugget varies with the quality and content of pure gold in the nugget. Gold nuggets are more expensive today because they’re extremely rare. The demand for these gold pieces is high, which makes gold nuggets incredibly valuable.
The price is usually quoted as price per gram. For the total price, the price per gram is multiplied by the total weight of the nugget. Let’s have a look at the factors that have a significant impact on the cost of gold nuggets.
Gold nuggets are found in numerous shapes, sizes, and appearances. Gold nuggets are valued differently than raw gold and gold in coin form. When evaluating natural gold consider several factors. Gold may be valued on: weight, rarity, physical dimensions, shine, brightness or lustre, purity, origin, and whether the nugget is considered collector or specimen grade. In short, the larger and more attractive a gold nugget is, the more expensive it will be.
The place where a gold nugget is extracted has a significant effect on its cost. A nugget that was extracted from an obscure location is priced much higher as compared to a nugget obtained from a more known location.
The size, of course, is the most important factor. The bigger a gold nugget is, the more expensive it will be. In fact, larger gold nuggets are extremely rare, therefore you can expect them to have higher premiums for the price per gram than smaller nuggets.
Is Investing In Gold Nuggets A Good Option?
Today, gold bars and coins are far more common as compared to gold nuggets. The rarity of natural gold nuggets has led to an increase in demand for them, making gold nuggets tremendously valuable.
When it comes to whether investing in gold nuggets is a good option or not, most experts suggest that investing in gold nuggets is a very wise thing to do. As we’ve mentioned earlier in this blog post, gold nuggets contain pure, jewelry-grade gold. Gold has been one of the most valuable metals since it was discovered, and it retains its value even today. And remember less than 2% of all gold found is in nugget form which is what makes natural gold nuggets so valuable! Gold is an asset that is sure to give you an excellent return on investment at any point in your life.
The trend of gold prices
Let us take you through the trend of gold prices in the past year. The prices of gold have increased by a massive 30.74% in a period of one year (Ref: www.investing.com). From the start of 2020 alone, the price of gold per ounce has hiked from $1520 to $1748! From what we see, the trend isn’t going to slow down any time soon. In fact, with the uncertainty in the global economy today, investing in gold nuggets seems to be one of the safest investment decisions that you can make today! Take a look at the chart below to see what the price of gold has done in the past 12 months.
ValueNatural gold nuggets hold the value of money. It means that if a time ever comes when flat currencies are not accepted or if the flat currencies are devalued to a level where they’re deemed worthless, natural gold nuggets can serve as a means of currency. Gold nuggets can play their role just like gold and silver as a medium of exchange. Another benefit that gold nuggets come with is that, unlike gold coins and bars that are available in an ounce or larger form, gold nuggets can be bought in sizes smaller than a tenth of a gram!
Most importantly, natural gold nuggets are collectibles, and therefore, hold a tremendous value of their own. You’ll be amazed to know that large, natural gold nuggets are rarer than diamonds! In the earlier days, most gold nuggets were melted to obtain pure jewelry grade gold, but for the past 25 years, gold nuggets have found their lost worth, and people are starting to collect them again.
With time, natural gold nuggets are becoming increasingly hard to find since most of the easy-to-get ones have already been extracted. This has made natural gold nuggets very rare and hence, super valuable. With that being said, the rarity of natural gold nuggets has resulted in a surge in demand, and more and more people have started to put their money on them!
So, if you’re planning on investing in natural gold nuggets, you should do so. While the current market for gold is still in its early stages, it is believed that the market will surge in the coming years. When the market surges, natural gold nuggets are sure to give you tremendous returns on investment!
The Earth is full of natural, valuable wonders, and the natural gold nuggets that can be found in the Earth are nothing short of spectacular. The gold content of natural gold nuggets can be used just like regular gold. It can be melted to make jewelry or could be extracted and sold as pure gold. However, preserving these natural gold nuggets is what holds the most value. Like all other rare collectibles, natural gold nuggets are highly valuable. The demand is high, and the supply is low. So, if you happen to have a gold nugget in your possession, you better hold on to it!
We can’t stress enough on just how valuable gold nuggets are. As previously stated less than 2% of all gold found are in nugget form. They’re a true asset that you can hold on to for the future. Even if you change your plans and decide to keep them for your use, you can always have your gold nugget melted to extract the pure gold and have jewelry made! Considering how high their demand is and how low their supply is, gold nuggets have the potential to give you a tremendous return on investment! For the best quality natural gold nuggets, visit Liquidbullion and start adding natural gold nuggets to your investment portfolio today!